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Churchill Downs, Inc. (Symbol: CHDN) announced new options for December 2026 expiration on October 12, 2023. Among them, a put contract at the $85.00 strike price has a current bid of $8.00, offering a potential effective purchase price of $77.00 per share, which is a 12.5% discount from today’s trading price of $88.09. The likelihood of this put contract expiring worthless is estimated at 66%.
Additionally, a call contract at the $95.00 strike price is available with a current bid of $9.50. If shares are sold at this price upon expiration, investors could see an overall return of 18.63%. The chances of this call expiring worthless are at 46%, with potential additional returns from collected premiums.
The implied volatility for the put contract is 35%, while that for the call contract is 33%. The trailing twelve-month actual volatility is calculated at 31%.
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